Posts tagged ‘Chevrolet’


Could this happen one day at GM?

22.02.2020


The MG line-up in New Zealand. Could it be part of a bigger portfolio of brands later this decade?

In the context of what has happened with Holden, and Peter Hanenberger’s thoughts on the direction of GM, I wonder how far away we are from seeing these headlines:

Cash-strapped GM sells passenger car brands to SAIC to focus on trucks and SUVs

and:

SAIC builds passenger-car brand portfolio with Wuling, Baojun, Chevrolet, Roewe, MG, Buick and Cadillac

You can almost think of MG as Pontiac and Roewe as Oldsmobile … With the decimation of the GM line-up globally, and the segments they no longer field (e.g. C-segment cars in many markets), will they even have the investment needed to sustain the car brands?
   I know they are saying this was all necessary to fund the electrification of the range and autonomous tech, but isn’t this the same company that nixed the EV1 and failed to make the Volt a Prius-beater?
   The Chinese state wasn’t about creating “Chinese Leyland” when they forced SAIC and NAC to merge. They had much grander plans.

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Posted in business, cars, China, USA | No Comments »


Peter Hanenberger’s unintended post mortem of Holden

19.02.2020


The 2009 Chevrolet Caprice SS, sold in the Middle East but made in Australia.

I came across a 2017 interview with former Holden chairman Peter Hanenberger, who was in charge when the company had its last number-one sales’ position in Australia. His words are prescient and everything he said then still applies today.
   He spent over four and a half decades at GM so he knows the company better than most. Since he departed in 2003 he had seven successors at the time of the interview; and I believe there have been a couple more since.
   A few interesting quotes.

‘It’s [now] a very short-sighted company.’
It feels like it. The sort of retreating it’s done, the dismantling of global operations, and the failure to see how global platforms can achieve economies of scale is something only a company beholden to quarterly stock price results will do. And it doesn’t help its longevity.
   Even Holden, which looked like it was going to simply depart the passenger-car sector at the end of last year before a full withdrawal now, tells us that there doesn’t appear to be a long-term plan in place that the US management is committed to. Not long ago they were going on about the two dozen models they planned to launch to field a competitive line-up.

‘For me General Motors was a global player. Today General Motors is shrinking to an American company with no foresight, which is in very bad shape, which has missed the market.’
Remember Hanenberger said this in 2017, when it still had presences in many Asian countries. In 2020 it very much looks like GM will be in the Americas (where it still fields reasonably complete line-ups, although God knows if they have anything in the pipeline to replace the existing models) and China. Russia, India, Australia, New Zealand and Thailand are gone or going, and western Europe went in 2017 before the interview.

‘Maybe it fits into the vision of Trump; America first. But how the world is going to work also in the future is not because of America first and America only. It’s global. I think there will be no GM in the near-future.’
Everyone else is desperate to do tie-ups while GM retreats. I think GM will still be around but it’ll be a Chinese firm.

‘I couldn’t give a shit what they thought in America.’
I don’t mean this as an anti-American quote, but I see it as a dig against bean counters (whatever their nationality) fixated on the short term and not motorheads who know their sector well.

‘For me Holden didn’t have enough product, and the second one [priority] was I wanted to get these cars they had into export. For me it was very clear the products they had could be exported and they should go on to export.’
You saw the failure of this in the early 2010s when Holden failed to keep its Middle Eastern deals, and the US models returned. It could have been so different, though I realize GM was very cash-strapped when they needed the US taxpayer to bail them out.
   Bruce Newton, who wrote the piece, says that the Middle East was worth up to 40,000 units per annum, with A$10,000 profit per car. It cost Holden A$20 million to develop them for left-hand drive. I’d have held on to that sort of opportunity for dear life.

‘There was nothing going on that was creative towards the future of Holden as in Australia, New Zealand and toward the export market. They just neglected this whole thing.’
That was Hanenberger when he visited his old workplace in 2006. With product development cycles the way they are, it’s no wonder they were so ill placed when the Middle Eastern markets lost interest in the VE Commodore and WM Caprice (as the Chevrolet Lumina and Caprice), and China in the Buick Park Avenue.
   It’s an interesting interview and perhaps one of the best post mortems for Holden, even if it wasn’t intended to be so three years ago.

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Posted in business, cars, China, leadership, USA | 1 Comment »


Flip-flop again: GM deems Chevrolet Europe strategy a failure

08.12.2013

GM has changed its mind again: Chevrolet will not be its global brand.
   The strategy, where Daewoo was rebadged Chevrolet in western Europe at the beginning of the century, has been deemed a failure, and GM will withdraw its core Korean-made models such as the Spark, Aveo, Cruze and Malibu, by 2015. It will return to where it was a few decades ago: a brand selling quintessentially American cars such as the Camaro and Corvette.
   For many years on this blog, I expressed my doubts on rebadging Daewoos, either as Holden or Chevrolet. If GM wanted a budget brand, it had one in Daewoo. With the exception of the Malibu, the cars always looked Korean anyway, despite some US (and Australian) styling input, and Kia and Hyundai demonstrate that there is no negative brand equity these days with ‘Made in Korea’.
   It was impossible for GM to shake off Chevrolet’s American country-of-origin effect in the last decade in western Europe. GM also believes that having Opel and Vauxhall as its mainstream western European brand is enough.
   The theory wasn’t all wrong though. In the last decade we’ve seen the continued rise of Å koda, and Dacia has managed to find buyers. Nissan has brought back Datsun in an effort to appeal to cost-conscious consumers who want a simple car. Daewoo could have had a role to play in Europe, if GM had got the marketing right.
   It also seem to have got things wrong with Opel in Australia, pulling out after an even shorter time.
   I seem to be correct again when I argued that brands like Holden could not be abandoned in favour of Chevrolet, because you can never rely on GM for a long-term strategy. There are no economies of scale in promotion when Chevrolet simply isn’t as well regarded outside the Americas, and where we consumers are still quite happy to use certain domestic or regional brands as mental shortcuts to cars being sold as domestic appliances. Levitt isn’t to be applied blindly.

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Posted in branding, business, cars, globalization, marketing, USA | 2 Comments »


Chevrolet’s new Malibu might still look like a Daewoo

01.04.2011

I took a few digs at the forthcoming Chevrolet Malibu on my Facebook yesterday.
   First: a few things GM got right.
   It’s right to put this on a global platform—in this case, the Opel Insignia‘s. It’s also right to make it a world car of sorts, where it can be sold globally with few changes, to maximize economies of scale.
   It’s also right to put in various Chevrolet-like touches. In the above video, you’ll hear the head exterior designer, Dan Gifford, go on about the coupé-like bits that’ll appear on the new Malibu. This only makes sense so that the brand has a certain æsthetic—something which it lacks at the moment as it tries to shift rebadged Daewoos.
   However, I’m not too confident about this car, despite the excellent, award-winning platform.
   Chevrolet’s message of recent years has been so different in each region that I wonder if some will even get the Camaro connection with the Malibu’s rear-light design.
   And this will be, I believe, the first new product from Chevrolet in the Korean market since the failure of the Holden Torana-based 1700 in the 1970s.
   In other words, in the east, where GM has already said the Malibu will make its Mali-début, it will replace the Daewoo Tosca, probably the most underwhelming car produced in the last decade, and a favourite of suicidal Seoul taxi drivers.
   The reason the Tosca is so ugly is that its designers expected it to be dented by fleet customers, thereby improving its looks.
   Daewoo needs to keep some link between Tosca and Chevrolet Malibu. It has to appeal to east Asian tastes, where GM expects to sell a lot of these cars, which means some of the aggression that Gifford talks about will likely be toned down.
   If you look at the spy photos or the animation above, it still looks like a big Daewoo to me, and I don’t mean that in a good way. It is an improvement—don’t get me wrong—but I’m still expecting it to make the designers of the 2006 Toyota Camry appear prescient.

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Posted in business, cars, design, USA | No Comments »


It’s ‘Chevy’—even President Obama says so

19.07.2010

Dear Chevrolet: even your own nation’s president calls the brand ‘Chevy’:

You might want to rethink that memo.

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Posted in branding, cars, culture, media, TV, USA | No Comments »